Initiatives in Growth Market
Based on the mobile phone and Internet business management expertise, KDDI is moving aggressively to take advantage of opportunities in growing overseas markets. In 2014, we embarked on the telecommunications business in Myanmar in collaboration with Sumitomo Corporation and Myanma Posts and Telecommunications (MPT). In 1995, we invested in Mobicom Corporation LLC, a Mongolian mobile phone operator, which continues to serve as the country’s leading operator*. Furthermore, in 2010 we invested in Locus Telecommunications, LLC, and Total Call International, LLC-two companies that are developing mobile communications businesses targeting the steadily increasing U.S. immigrant population. KDDI will continue in its efforts to enter new growth markets, thereby contributing to economic development around the world.
- *As of December 2014
Developing the Telecommunications Business in Fast-Growing Myanmar
In July 2014, KDDI entered the telecommunications business in Myanmar as part of a three-company collaboration with Sumitomo Corporation and MPT. This business has succeeded in boosting mobile phone penetration from around 13%¹ in 2013 to some 50%² in 2015. By improving telecommunications quality and expanding area coverage, we are working to bring convenient mobile telephone, Internet, and other telecommunications services to even more people in Myanmar. Accordingly, we are moving forward with the construction of high-quality and efficient infrastructure in the country to ensure stable communications services.
- *1 Source: JICA Myanmar Telecommunications Network Improvement Project Initial Evaluation
- *2 Source: Estimated by KDDI based on the three companies' IR announcements
MVNO business in United States
KDDI is expanding into the global immigrant market. We are leveraging the expertise we built through our “au” mobile phone business, as well as the strong carrier partnerships in the international telecommunications industry we have been developing for more than a half-century. There are about 200 million immigrants around the world. Most have moved from lesser-developed nations to the leading global powers. These immigrants are instrumental in driving the world economy today.
As a first step to entering this fast-growing market, KDDI invested in two US-based MVNOs in early 2010. These MVNOs primarily served the immigrant population.
There are 40 million foreign-born (first generation) immigrants in the U.S., comprising more than 10% of the total population.
We are planning to expand and develop our immigrant market business through a combination of specific services and products, including handsets, international calling,and mobile content.
20 year relationship along with Mongolia
Mongolia has about 3 million populations and its size of the country is 4 times as Japan.
KDDI has engaged telecommunication business in Mongolia with Sumitomo Corporation and Newcom under the brand name "Mobicom" since 1996.
For the past 20 years since the establishement, GDP has increased to over 2,000 USD from 400 USD and Mobicom has provided high quality and stable telecommunication service by the continuous improvement on network and coverage expansion. As a result, Mobicom has been No.1 mobile phone provider in Mongolia and supported people in Mongolia. KDDI will continuously contribute on economic growth and lifestyle improvements.